ISLAMABAD: The federal cabinet, which met under the chairmanship of Prime Minister Shehbaz Sharif, gave approval to a fifteen per cent increase in the salaries and five per cent in the pension of government employees on Monday.

The cabinet also gave a nod to merging the ad hoc allowances (2016-17-18-19 & 21) of government employees into their Basic Pay Scale 2017. In the budget, the finance ministry had proposed a 10 per cent increase in salaries. But, PM Shehbaz rejected the proposal and approved a 15% increase.

In the budget of Imran Khan’s previous government, salaries and pensions of government employees were increased by 10 per cent. In Finance Bill 2022/23, the tax slab for employed professionals has been reduced from 12 to 7.

Other benefits

• 15% ad-hoc relief on the running basic pay of BPS 2017
• Executive allowance at 150% of the basic pay to the officers’ BS 17 to 22 working in Federal Secretariat in line with provincial governments.
• Disparity reduction allowance 2022 at 15% will be extended to officers of BPS 20 to 22 including principals, secretariat officers and officers of attached departments.
• Conveyance Allowance enhanced up to 100%
• Transport allowance will be granted Rs25,617 to the officers BPS 17 to 19 working in federal secretariat in place of conveyance allowance
• Qualification pay enhanced by 100%
• Orderly allowance increased from Rs17,500 to Rs25,000
• Rates of drivers salary to the officers in transport monetization enhanced to Rs25,000
• Entertainment allowance abolished